Emergency Economic Stabilization Act of 2008 :
A Summary Of Features
Based on Discussion Draft as of Sept. 28, 2008
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Features of Draft EESA of 2008
1. STABILIZING THE ECONOMY
• Up to $700 billion, in installments (see #5) , to buy mortgages and other assets. • A program that would allow companies to insure their troubled assets.
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Features of Draft EESA of 2008
2. HOMEOWNERSHIP PRESERVATION
• Treasury to modify troubled loans wherever possible to help American families keep their home. • Other federal agencies to modify loans that they own and control. • Improves the HOPE for Homeowners program. www.investmentbankeronlife.com
Features of Draft EESA of 2008
3. TAXPAYER PROTECTION
• Participating companies to give government warrants to receive stocks, so taxpayers can participate in profits. • President to submit legislation that would cover any losses to taxpayers resulting from the program.
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Features of Draft EESA of 2008
4. NO WINDFALLS FOR EXECUTIVES
• Participating companies to lose certain tax benefits and, in some cases, must limit executive pay. • Limits “golden parachutes” and requires that unearned bonuses be returned.
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Features of Draft EESA of 2008
5. STRONG OVERSIGHT
• Treasury to receive immediately $250 B, then President to certify if additional funds needed ($100 B, then $350 B). • Treasury must submit report of fund use. • Establishes an Oversight Board. • Establishes a special inspector general.
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